Articlebronze2007

Is Foreign Aid Compatible with Good Governance?

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International Development and Aid Public Administration in Developing Nations Natural Resources and Economic Development

Abstract

Abstract Is foreign aid compatible with good governance? Using the case of irrigation aid in the Philippines, I hypothesise that aid is embedded in a perverse set of incentives which could undermine the application of good governance principles espoused by donors. My findings suggest that the problems of “moral hazard” and aid fungibility are embedded in irrigation aid. Furthermore, these incentives also drive a vicious cycle in irrigation commonly found in many developing countries. These findings indeed suggest that incentives structured into the relationship between donors and irrigation agencies may undermine the application of some principles of good governance espoused by donors.

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References

1990Governing the Commons 1992Governing the Commons: The Evolution of Institutions for Collective Action 1966The Logic of Collective Action: Public Goods and the Theory of Groups.1982Rational cooperation in the finitely repeated prisoners' dilemma 1986An Evolutionary Approach to Norms 2001African Economies and the Politics of Permanent Crisis, 1979–1999 1981The Emergence of Cooperation among Egoists 1989Policy analysis : concepts and practice

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